By Emmanuel Enitan
Billions of naira spent annually by Federal Government ministries, departments and agencies (MDAs) on vehicles could now be redirected to local automobile manufacturers as the government tightens enforcement of its Nigeria First policy, making domestic procurement a condition for public vehicle purchases.
Under the new rules, Federal MDAs and other procuring entities are required to prioritise and purchase vehicles assembled or manufactured in Nigeria, while purchases from foreign manufacturers are prohibited except where an official waiver is granted because of an absence of local capacity or availability.
The policy, which is being implemented by the Bureau of Public Procurement (BPP) in collaboration with the National Automotive Design and Development Council (NADDC), is expected to give a significant boost to local assemblers by turning government procurement into a guaranteed market for qualifying manufacturers.
Director-General of the NADDC, Oluwemimo Joseph Osanipin, had said the policy would ensure that government spending directly supports domestic industrial growth, describing the measure as an economic imperative rather than merely a procurement requirement.
The latest enforcement framework requires procuring entities to obtain evidence of a Letter or Certificate of “No Objection” from the BPP before payment for automotive procurement can be processed.
Government agencies are also required to submit detailed records of vehicles in their fleets from 2020 to date, including purchase dates, prices, brands, models, Vehicle Identification Numbers (VINs), evidence of payment and the current status of each vehicle.
The BPP said quarterly procurement reports must contain itemised details of automotive purchases and demonstrate compliance with local-content requirements. Failure to comply could lead to rejection of procurement approval requests and sanctions against defaulting accounting officers and procuring entities.
The policy comes as Nigeria’s vehicle import bill continues to rise, with passenger motor car imports reaching N1.18 trillion in the first half of 2026, up 145.6 per cent from N479.26 billion recorded in the corresponding period of 2025.
Overall imports of transport equipment and parts also rose to N3.73 trillion during the period, representing a 44.2 per cent increase over the N2.59 trillion recorded in the first half of last year.
For the domestic automotive industry, the redirection of public procurement could provide a more predictable market for assemblers and help them achieve economies of scale, invest in production capacity and develop local component supply chains.
The policy also has implications for employment and foreign exchange conservation, as greater use of locally assembled vehicles could reduce the demand for imported vehicles while supporting jobs across vehicle assembly, maintenance, parts manufacturing, logistics and related services.
Osanipin said the government’s objective went beyond simple vehicle assembly to developing an automotive ecosystem involving functional assembly lines, skilled technical personnel, service centres and local infrastructure.
Industry operators have also welcomed the policy, with local manufacturers arguing that sustained government patronage could provide the demand needed to strengthen domestic production.
Managing Director of Innoson Vehicle Manufacturing, Innocent Chukwuma, recently welcomed the Federal Government’s emphasis on local vehicle procurement, saying the policy would create greater opportunities for Nigerian manufacturers.
However, the effectiveness of the policy is likely to depend on the capacity of local manufacturers to meet government demand in terms of quality, pricing, vehicle specifications, after-sales support and delivery capacity.
The policy allows waivers where local capacity or availability is insufficient, meaning domestic manufacturers will still face pressure to demonstrate that locally assembled vehicles can compete on cost, performance and reliability.
The development also comes at a time when the Federal Government is pursuing broader reforms in the automotive sector, including measures aimed at encouraging electric and compressed natural gas (CNG) vehicles and reducing dependence on imported automotive products.
The government’s approach effectively places public procurement at the centre of its industrialisation strategy, with the objective of ensuring that money spent on government vehicles generates economic activity within Nigeria rather than primarily financing foreign production.
For the local automotive industry, the immediate challenge is now to convert the policy advantage into increased production, deeper local content and stronger manufacturing capacity.
For government, the test will be whether the policy can achieve those industrial objectives while maintaining value for money and ensuring that restrictions on imports do not translate into higher procurement costs or shortages where domestic capacity remains limited.
The outcome could determine whether Nigeria’s huge public vehicle procurement market becomes a sustainable foundation for local automotive manufacturing or remains dependent on periodic government intervention.
